Clear Correlation Between National Broadband Plans and Access to Affordable Services

Published on: 1st Jul 2013

Note -- this news article is more than a year old.

Countries with a clearly defined national vision for broadband roll out are significantly out performing those taking a more laissez faire approach to broadband development, according to a report published by the ITU and Cisco Systems.

According to the research, raw data indicates that countries with a National
Broadband Plan have fixed broadband penetration some 8.7% higher on average than
countries without plans. Once the potential impact of factors like higher
average income per capita, market concentration and urbanization are discounted,
research suggests that countries with plans benefit from fixed broadband
penetration on average 2.5% higher than countries without plans -- a significant
margin of advantage in an increasingly interconnected global economy.

In mobile, the impact may be even greater -- countries which have National
Broadband Plans also have mobile broadband penetration some 7.4% higher on
average than countries without plans.

The report concludes that market competition also plays a strong role in
boosting broadband penetration. Competitive markets are associated with
broadband penetration levels some 1.4% higher on average for fixed broadband and
up to 26.5% higher on average for mobile broadband.

"The Broadband Commission's message about the power of broadband to
transform each and every economic sector is now gaining global traction," said
ITU Secretary-General, Dr Hamadoun I. Toure. "Governments are realizing that
broadband networks are not just vital to national competitiveness, but to the
delivery of education, healthcare, public utilities like energy and water,
environmental management, and a whole host of government services. Broadband is
the key enabler not just of human interaction, but of the machine-to-machine
communications systems that will underpin tomorrow's world."

The report also documents strong recent growth in National Broadband Plans,
with 134 plans in force by mid-2013. Plans may take different forms
(legislation, policy frameworks, government strategy and/or regulations), but
all share a common emphasis on the vital role of broadband in underpinning
national competitiveness, and aim to extend the national footprint of broadband
networks and drive increased use of broadband-enabled services and applications.

The full economic and social benefits are most likely to be realized where
there is strong partnership between government and industry, and where
governments engage in a consultative, participatory approach to policy in
conjunction with key stakeholders, the report says.

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